Veros Enhances Highly Effective Forecasting Tool VeroFORECAST
Jan 29, 2007
No other forecasting model in the industry has proven as accurate as the Veros solution
Santa Ana, CA - January 29, 2007 - In 2003, when Veros Software, the industry leader in predictive technology, first forecasted which markets would be the top 10 hottest and coldest for home price appreciation, many lenders were skeptical that anyone could deliver consistently accurate forecasting. Since then, Veros has continued to make public predictions each year and measured those forecasts against actual market results. The Veros model has proven amazingly accurate at foretelling how much property values will increase or decrease in a given market. Now, new enhancements to the model make it even more powerful for lenders, investors, and any group interested in the changing residential property market.
Today, Veros announced that VeroFORECAST has been enhanced to deliver accurate predictions of future value according to property type, single-family or condominium properties, at the CBSA, county and ZIP code levels. This provides much more granularity and awareness of the direction of home prices in a tighter geographic vicinity specific to property characteristics. In addition, VeroFORECAST drills down to specific property price tiers, applying key predictor variables to properties in a more scientific manner, which results in more accurate price change forecasts. Furthermore, VeroFORECAST predictions can now be provided for a 12-month or 15-month time period.
"We believe there is no more accurate forecasting tool available in the industry," said Darius Bozorgi, CEO of Veros Software. "We have tested our model and its predictions for the past three years and they are very close to actual market conditions. Lenders, investors and servicers are keen to know the future value of their collateral and the associated risks. Market stakeholders are also looking for opportunities in a rapidly changing and competitive landscape. VeroFORECAST is the very best way to get there."
Over the past few years, Veros has proven its ability to effectively forecast future price trends across the United States by predicting price appreciation for national markets and then comparing the forecasts to the actual results. The results have been impressive, with Veros capable of predicting accurately nearly 70% of all key variables. This means that the company has become very adept at predicting where the market will go in terms of home prices. Part of the reason the Veros models are more effective than other commercially available tools is that the company looks at data in a different manner. Because different forecasts are provided for different property types and price tiers, the model's results are closer to market reality.
"People in a local marketplace understand that various types of properties will price and sell differently," Bozorgi said. "High-priced homes don't sell the same way other homes do. Neither do condos as compared to single-family homes. To be effective, you have to separate the data and apply it to the appropriate segments of collateral inventory." VeroFORECAST is available by region, state, CBSA, county and ZIP code in three price tiers for both single-family homes and condominiums.
About Veros Real Estate Solutions:
Veros Real Estate Solutions, a proven leader in enterprise risk management and collateral valuation services, uniquely combines the power of predictive technology, data analytics and industry expertise to deliver advanced automated decisioning solutions. Veros products and services are optimizing millions of profitable decisions throughout the mortgage industry, from loan origination through servicing and securitization. Veros provides solutions to control risk and increase profits including automated valuations, fraud and risk detection, portfolio analysis, forecasting, and next-generation collateral risk management platforms. Veros is headquartered in Santa Ana, California. To order the VeroFORECAST update or receive information on other Veros analytic products and systems, visit www.veros.com or call (866) 458-3767.